USD/FJD Outlook:
Bearish, as the rate is below its recent average and near recent lows.
Key drivers:
- Rate gap: The Federal Reserve's decision to hold interest rates steady contrasts with the Reserve Bank of Fiji's low rate, making the FJD more attractive.
- Risk/commodities: Ongoing geopolitical tensions and tariffs are clouding the outlook for the US dollar, impacting investor confidence.
- One macro factor: The Fijian economy is projected to slow, but a recent strengthening of the FJD against the USD reflects some resilience.
Range:
The USD/FJD is likely to hold near recent lows but may drift within the stable range it has traded recently.
What could change it:
- Upside risk: A surprise improvement in US jobless claims could support the USD.
- Downside risk: Heightened global trade tensions could further undermine the USD’s value.
